INTERNATIONAL FINANCIAL REPORTING STNADARD AND FINANCIAL REPORTING IN NIGERIA:

THE CHALLENGES FOR EXTERNAL AUDITORS (A CASE STUDY OF SELECTED AUDIT FIRMS IN NIGERIA)

KHALIFA USMAN (SMS/07/ACC/00109)

BEING A RESEARCH PROJECT SUBMITTED TO THE DEPARTMENT OF ACCOUNTING, BAYERO UNIVERSITY, KANO, IN PARTIAL FULFILMENT OF THE REQUIREMNT FOR THE AWARD OF BACHELLOR OF SCIENCE (B.Sc.) DEGREE IN ACCOUNTING

MARCH, 12

CERTIFICATION This is to certify that this project has been fully read and thus approved and acknowledge as a partial fulfillment of the requirements of the faculty of social and management Sciences, Department of Accounting, Bayero University, Kano, for the award of Bachelor of Science (B.Sc.) Degree in Accounting.

------------------------------------------Dr Aminu Isah Project supervisor

--------------------------------------Date

-----------------------------------------Prof Bashir Tijjni Head of Department

--------------------------------------Date

DECLERATION I khalifa usman, hereby declare that this work is the product of my own independent research effort, undertaken under the supervision of Dr Aminu Isah in partial fulfillment of the requirements for the award of B.Sc. degree in Accounting and submitted to the Department of Accounting, Bayero University, Kano. All sources and materials used have been duly acknowledged, any error (either of omission or commission) is not with intend, and is highly regretted.

Khalifa Usman
SMS/07/ACC/00109

DEDICATION
This project work is dedicated to my late grand fathers and mother. I never had the opportunity to spend passionate time with you people, but you will be forever remembered. May ALLAH (s w a) in his infinite mercy grant you a garden beneath which river flows (Ameen).

ACKNOWLEDGEMENT All praise is due to ALLAH, you alone we worship, you alone we ask for help and unto you shall we return. I ask for your help and you have seen me to a successful completion of my studies and this research work. My sincere gratitude and appreciation goes to my parents Alhaji Maj Usman Abdul-Aziz and my precious, sweet, adorable, caring, compassionate and loving mother Hajia Dr (Mrs.) Hussaina Abdulahi for their financial. Psychological and moral support towards my educational pursuit. I am very grateful to them, and my ALLAH reward them with a garden beneath which river flows. My gratitude and sincere appreciation goes to my supervisor Dr Aminu Isah, who read and criticized the text at various stages, this project would not have been a reality without his wealth of experience, advice and continuous guidance rendered, and this greatly stimulated me in writing this project. My special regards goes to my brothers and sisters, Nurudeen Bala Usman,Nafisatu Osheiza Usman, Shaatu (queen) Ahmad, Ahmad Usman, Bilal Usman. Special regards must also be given to my folks and dudes in school, Muktar Idris (fish), Umar Usman, Evelyn Yunusa (portable) and Ibrahim, may ALLAH in his gracious and infinite mercy grant you all your hearth desires (ameen).

ABSTRACT The International Financial Reporting Standard is gaining a very high momentum in many countries of the world today. These are because of its usefulness to the financial reporting environment. Nigeria is not an exception to this; she does not want to be left behind in the current development that goes on in the world, especially where she can tap behind in the current development. So many changes have been put in place to ensure that the adoption of IFRS is taken its toll in the country and the changing of the Nigerian Accounting Standard Board to the Financial Reporting Council of Nigeria is one major step the federal government has taken. This study is aimed at taking a look at the method to obtain information from sampled audit firms. It was discovered that the major challenges befalling auditors is the issue of adequate training and it was therefore recommended that auditors should train themselves through getting materials that would assist in addressing this challenges and also train their clients to this effect. So also, the positive effects of the adoption of

International Financial Reporting Standards should be explored by reporting entities so as to ensure that they maximise the opportunities and benefits therein.

TABLE OF CONTENT Title Page___________________________________________________________________i Certification_________________________________________________________________ii Decleration__________________________________________________________________iii Acknowledgment______________________________________________________________iv Abstract______________________________________________________________________v Table of content_______________________________________________________________vii CHAPTER ONE INTRODUCTION_______________________________________________________________1 1.1 General description of the area of study______________________________________ 1.2 Statement of Research problem________________________________________________3 1.3 Objective of the study_______________________________________________________ 1.4 Research question and statement of hypothesis__________________________________ 1.5 Significance of the study 1.6 Scope of the study 1.7 Limitation of the study 1.8 Definition of key terms and acronyms 1.9 Plan of the study CHAPTER TWO LITERATURE REVIEW 2.0 Introduction 2.1 Historical background of the area of study 2.2 Function or duty of external Auditor 2.2.1 Financial Statement 2.2.2 Purpose of Financial Statement 2.2.3 Features of Financial Statement 2.3 Accounting Standard

2.3.1 The need for Standardization in Nigeria 2.4 Purpose of Financial Reporting 2.4.1 Corporate Governance and Properties of IFRS adoption 2.4.2 The effect of IFRS adoption to External Auditor 2.5 Scope and Application of Accounting Standard 2.6.0 International Accounting Standard Board (IASB) 2.6.1 Objectives of IASB 2.7.0 International Accounting Standard 2.7.1International Financial Reporting Standard (IFRS) 2.8 Prospects and challenges of IFRSs adoption prospects CHAPTER THREE METHODOLOGY 3.0 Introduction 3.1population of study 3.3 sample size 3.4 method of data collection 3.4.1 primary data 3.4.2 secondary data 3.5 method of data analysis CHAPTER FOUR PRESENTANTION, ANALYSIS AND INTERPRETATION OF DATA 4.1 Introduction 4.2 data presentation 4.3 back ground information of the respondent

4.4 significance of ifrs in corporate financial reporting 4.5role of external auditors having significant influence on the adoption of IFRS 4.6 Irrational judgment of external auditors between SAS and IFRS in corporate financial reporting CHAPTER FIVE SUMMARY, CONCLUSION AND RECOMMENDATION 5.1 Summary 5.1.1 Summary of work done 5.2 conclusion 5.3 Recomendation